Has Microsoft paid $150m to compete with Google Glass?

Following Facebook’s acquisition of Oculus VR for $2 billion, Microsoft has purchased assets related to augmented reality and wearable computing.

Last week’s reports said that the Washingtonbased company had paid $150 million to acquire the rights to technology from the Osterhout Design Group (ODG)—a company that develops wearable display devices for the military and government organisations.

The government will continue to be ODG’s primary focus, said Ralph Osterhout, founder and head of the company. The terms of the transaction aren’t clear, but ODG will remain a separate company. ODG holds 81 patents related to wearable technology, and Osterhout said that it holds inventions that could be relatable for everyday consumers.

ODG’s patents describe technology pertaining to devices that could compete with Google Glass. ODG’s inventions, however, appear to emphasise augmented reality more than Google Glass. ODG’s patent US8477425 B2 describes a pair of smart glasses optimised for augmented reality and 3D interaction.

Google’s head-mounted display doesn’t actually project images onto the environment around you to create augmented reality. Instead, it displays images in a tiny prism-shaped display above your eye to avoid distraction.

The acquisition doesn’t necessarily guarantee that Microsoft is working on a wearable display of its own, but it provides further evidence that the company is at least considering it. Last month reports said that Microsoft is developing a virtual reality wearable headset for the Xbox 360 and Xbox One.

In this context, it seems more likely that Microsoft’s device would compete with Sony’s recently announced ‘Project Morpheus’ headset for its PlayStation gaming console.